Gold prices held steady but were poised for a weekly decline, snapping a four-week uptrend, as maritime tensions between the United States and Iran escalated. This development dampened hopes for de-escalation and kept inflation risks elevated through energy channels.
Gold held below $4,700 an ounce on Friday, after falling nearly 3% over the week. Tensions have escalated as the US and Iran maintain a shipping blockade, while President Donald Trump ordered the US Navy to fire on ships laying mines in the Strait of Hormuz.
The US also reportedly intercepted two oil supertankers attempting to evade efforts to prevent traffic to and from Iranian ports. Meanwhile, Tehran reportedly attacked at least three ships this week, reinforcing the perception that shipping security risks remain high.
Several officials familiar with diplomatic efforts said that the chances of Iran agreeing to additional face-to-face talks with the US have been hampered by Trump’s threats and aggressive social media posts. This makes the negotiation path appear fragile, even though the ceasefire was briefly extended indefinitely.
Gold’s decline came after initial optimism faded, as the Hormuz blockade, now nearing its eighth week, and volatility around the route pushed oil prices higher. Energy supply disruptions heighten inflation risks and increase the likelihood of central banks holding interest rates longer or even raising them, conditions that typically hinder non-yielding bullion.
In recent trading, spot gold fell 0.1% to $4,690.98 per ounce (7:22 a.m. Singapore time). Silver fell 0.1% to $75.34, while platinum and palladium were relatively stable. The Bloomberg Dollar Spot Index was flat after rising 0.2% in the previous session.
5 headline points:
- Gold is headed for a weekly loss of nearly 3%, snapping a four-week uptrend.
- The US-Iran maritime standoff escalates, with shipping blockades and Trump’s order regarding mines in Hormuz.
- The US intercepted two supertankers; Iran reportedly attacked at least three vessels this week.
- Prospects for face-to-face talks are weakening, seen as hampered by Trump’s threats and tough public communication.
- Energy disruptions raise inflation and higher-for-longer risks, putting pressure on non-yielding gold; gold is down about 11% since the war began. (Asd)*
Source: Newsmaker.id